LINAMAR CORP (LNR.CA) Stock Fundamental Analysis
TSX:LNR - Toronto Stock Exchange - CA53278L1076 - Common Stock - Currency: CAD
LNR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 4 industry peers in the Automobile Components industry. LNR has an average financial health and profitability rating. LNR has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
LNR had positive earnings in the past year.
LNR had a positive operating cash flow in the past year.
Each year in the past 5 years LNR has been profitable.
In the past 5 years LNR always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 2.41%, LNR perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
LNR has a Return On Equity of 4.56%. This is comparable to the rest of the industry: LNR outperforms 50.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.51%, LNR is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for LNR is in line with the industry average of 7.02%.
The 3 year average ROIC (6.55%) for LNR is below the current ROIC(7.51%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.41% | ||
| ROE | 4.56% | ||
| ROIC | 7.51% |
ROA(3y)4.18%
ROA(5y)4.38%
ROE(3y)7.69%
ROE(5y)7.72%
ROIC(3y)6.55%
ROIC(5y)6.26%
1.3 Margins
LNR has a Profit Margin (2.48%) which is in line with its industry peers.
LNR's Profit Margin has declined in the last couple of years.
LNR has a better Operating Margin (9.03%) than 100.00% of its industry peers.
LNR's Operating Margin has been stable in the last couple of years.
LNR's Gross Margin of 14.56% is fine compared to the rest of the industry. LNR outperforms 75.00% of its industry peers.
In the last couple of years the Gross Margin of LNR has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.03% | ||
| PM (TTM) | 2.48% | ||
| GM | 14.56% |
OM growth 3Y-0.8%
OM growth 5Y0%
PM growth 3Y-27.61%
PM growth 5Y-15.91%
GM growth 3Y-0.31%
GM growth 5Y-0.22%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), LNR is creating some value.
LNR has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, LNR has less shares outstanding
The debt/assets ratio for LNR is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.63 indicates that LNR is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.63, LNR is doing good in the industry, outperforming 75.00% of the companies in the same industry.
The Debt to FCF ratio of LNR is 2.73, which is a good value as it means it would take LNR, 2.73 years of fcf income to pay off all of its debts.
LNR's Debt to FCF ratio of 2.73 is amongst the best of the industry. LNR outperforms 100.00% of its industry peers.
LNR has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
LNR has a Debt to Equity ratio of 0.34. This is in the better half of the industry: LNR outperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 2.73 | ||
| Altman-Z | 2.63 |
ROIC/WACC1.01
WACC7.45%
2.3 Liquidity
LNR has a Current Ratio of 1.69. This is a normal value and indicates that LNR is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.69, LNR is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
A Quick Ratio of 0.94 indicates that LNR may have some problems paying its short term obligations.
LNR's Quick ratio of 0.94 is fine compared to the rest of the industry. LNR outperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.69 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.39% over the past year.
LNR shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.61% yearly.
The Revenue has been growing slightly by 2.26% in the past year.
Measured over the past years, LNR shows a small growth in Revenue. The Revenue has been growing by 7.37% on average per year.
EPS 1Y (TTM)6.39%
EPS 3Y14.51%
EPS 5Y6.61%
EPS Q2Q%6.56%
Revenue 1Y (TTM)2.26%
Revenue growth 3Y17.42%
Revenue growth 5Y7.37%
Sales Q2Q%-6.97%
3.2 Future
Based on estimates for the next years, LNR will show a small growth in Earnings Per Share. The EPS will grow by 6.37% on average per year.
Based on estimates for the next years, LNR will show a decrease in Revenue. The Revenue will decrease by -0.21% on average per year.
EPS Next Y-2.06%
EPS Next 2Y6.37%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-3.44%
Revenue Next 2Y-0.21%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 6.31, the valuation of LNR can be described as very cheap.
LNR's Price/Earnings ratio is rather cheap when compared to the industry. LNR is cheaper than 100.00% of the companies in the same industry.
LNR's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.19.
With a Price/Forward Earnings ratio of 5.68, the valuation of LNR can be described as very cheap.
The rest of the industry has a similar Price/Forward Earnings ratio as LNR.
LNR is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.31 | ||
| Fwd PE | 5.68 |
4.2 Price Multiples
LNR's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. LNR is cheaper than 75.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, LNR is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.68 | ||
| EV/EBITDA | 3.25 |
4.3 Compensation for Growth
LNR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.95
EPS Next 2Y6.37%
EPS Next 3YN/A
5. Dividend
5.1 Amount
LNR has a Yearly Dividend Yield of 1.90%.
LNR's Dividend Yield is slightly below the industry average, which is at 4.00.
LNR's Dividend Yield is slightly below the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.9% |
5.2 History
On average, the dividend of LNR grows each year by 15.99%, which is quite nice.
LNR has been paying a dividend for at least 10 years, so it has a reliable track record.
LNR has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)15.99%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
LNR pays out 23.91% of its income as dividend. This is a sustainable payout ratio.
The dividend of LNR is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP23.91%
EPS Next 2Y6.37%
EPS Next 3YN/A
TSX:LNR (5/29/2025, 7:00:00 PM)
63.06
+1.05 (+1.69%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners20.39%
Inst Owner ChangeN/A
Ins Owners34.12%
Ins Owner ChangeN/A
Market Cap3.77B
Analysts74
Price Target64.94 (2.98%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.9% |
Yearly Dividend1
Dividend Growth(5Y)15.99%
DP23.91%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.33%
Min EPS beat(2)12.18%
Max EPS beat(2)14.48%
EPS beat(4)3
Avg EPS beat(4)7.01%
Min EPS beat(4)-0.57%
Max EPS beat(4)14.48%
EPS beat(8)7
Avg EPS beat(8)10.41%
EPS beat(12)10
Avg EPS beat(12)9.93%
EPS beat(16)13
Avg EPS beat(16)11.02%
Revenue beat(2)0
Avg Revenue beat(2)-2.04%
Min Revenue beat(2)-2.65%
Max Revenue beat(2)-1.42%
Revenue beat(4)0
Avg Revenue beat(4)-2.44%
Min Revenue beat(4)-4.21%
Max Revenue beat(4)-1.42%
Revenue beat(8)4
Avg Revenue beat(8)0.52%
Revenue beat(12)8
Avg Revenue beat(12)2.13%
Revenue beat(16)10
Avg Revenue beat(16)1.71%
PT rev (1m)-4.4%
PT rev (3m)-13.02%
EPS NQ rev (1m)7.21%
EPS NQ rev (3m)6.93%
EPS NY rev (1m)0%
EPS NY rev (3m)7.09%
Revenue NQ rev (1m)1.08%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-1.23%
Revenue NY rev (3m)-2.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.31 | ||
| Fwd PE | 5.68 | ||
| P/S | 0.36 | ||
| P/FCF | 4.68 | ||
| P/OCF | 2.97 | ||
| P/B | 0.67 | ||
| P/tB | 1.02 | ||
| EV/EBITDA | 3.25 |
EPS(TTM)9.99
EY15.84%
EPS(NY)11.11
Fwd EY17.62%
FCF(TTM)13.49
FCFY21.39%
OCF(TTM)21.2
OCFY33.63%
SpS173.75
BVpS94.41
TBVpS61.55
PEG (NY)N/A
PEG (5Y)0.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.41% | ||
| ROE | 4.56% | ||
| ROCE | 11.94% | ||
| ROIC | 7.51% | ||
| ROICexc | 8.49% | ||
| ROICexgc | 11.83% | ||
| OM | 9.03% | ||
| PM (TTM) | 2.48% | ||
| GM | 14.56% | ||
| FCFM | 7.76% |
ROA(3y)4.18%
ROA(5y)4.38%
ROE(3y)7.69%
ROE(5y)7.72%
ROIC(3y)6.55%
ROIC(5y)6.26%
ROICexc(3y)7.42%
ROICexc(5y)7.24%
ROICexgc(3y)10.64%
ROICexgc(5y)10.8%
ROCE(3y)10.42%
ROCE(5y)9.96%
ROICexcg growth 3Y-1.07%
ROICexcg growth 5Y3.47%
ROICexc growth 3Y2.32%
ROICexc growth 5Y3.81%
OM growth 3Y-0.8%
OM growth 5Y0%
PM growth 3Y-27.61%
PM growth 5Y-15.91%
GM growth 3Y-0.31%
GM growth 5Y-0.22%
F-Score7
Asset Turnover0.97
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 2.73 | ||
| Debt/EBITDA | 1.23 | ||
| Cap/Depr | 74.42% | ||
| Cap/Sales | 4.44% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 81.35% | ||
| Profit Quality | 313.35% | ||
| Current Ratio | 1.69 | ||
| Quick Ratio | 0.94 | ||
| Altman-Z | 2.63 |
F-Score7
WACC7.45%
ROIC/WACC1.01
Cap/Depr(3y)116.63%
Cap/Depr(5y)94.15%
Cap/Sales(3y)6.26%
Cap/Sales(5y)5.54%
Profit Quality(3y)92.83%
Profit Quality(5y)168.68%
High Growth Momentum
Growth
EPS 1Y (TTM)6.39%
EPS 3Y14.51%
EPS 5Y6.61%
EPS Q2Q%6.56%
EPS Next Y-2.06%
EPS Next 2Y6.37%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)2.26%
Revenue growth 3Y17.42%
Revenue growth 5Y7.37%
Sales Q2Q%-6.97%
Revenue Next Year-3.44%
Revenue Next 2Y-0.21%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y8.29%
EBIT growth 3Y16.48%
EBIT growth 5Y7.37%
EBIT Next Year63.98%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y828.35%
FCF growth 3Y1.81%
FCF growth 5Y2.55%
OCF growth 1Y115.93%
OCF growth 3Y11.33%
OCF growth 5Y1.44%